BGMEA proposes developing virtual market platform

NEWS DESK

Apparel sector leaders have proposed developing a virtual market platform mainly to dispose of readymade garments worth billion dollars cancelled by global buyers due to the ongoing Covid-19 pandemic.

They have also sought government's policy support in devising trade and economic strategies which fit in this context to help sustain the ongoing critical situation.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has recently put forward a set of proposals to the government including the necessity of developing the country's own virtual market platform.

Talking to the FT on Thursday, BGMEA president Dr Rubana Huq said the industry has been plagued by mass order cancellation as 1,150 factories reported that global buyers cancelled orders worth $3.08 billion.

Moreover, other factories did not report, she said, adding that raw materials worth around $2.0 billion piled up as the factories have already procured the raw materials against bank liabilities.

"Since the factories have stocks of billions of dollar worth of goods being cancelled by buyers that needs to be disposed of in the most feasible manner, while the COVID-19 will significantly shift the world market from bricks and mortars to e-tailing, therefore we feel the necessity of Bangladesh's own virtual marketplace platform," she told the FE.

Besides, RMG export performance in last April witnessed 85 per cent fall, the BGMEA leader said, adding that the decline might continue in May as the data showed that RMG exports declined by 65.62 per cent from May 01 to May 11.

BGMEA has also requested the government to accommodate its proposals in the upcoming budget to help sustain the industry, she added.

The proposals also included providing incentives for product diversification and technology upgradation, technology and infrastructure upgradation fund and exit policy.

The government should encourage product diversification by incentivising joint ventures in product categories particularly in areas like recycled yarn, polyester staple fiber, personal protective equipment, solar PV module assembly, light engineering like manufacturing spare parts for industrial washing machine, sewing machine, vacuum pump, gas compressor, boilers.

The government also should provide financial assistance for small and medium enterprises development and facilitating entrance of new entrepreneurs, according to the proposal.